The Relationship of Tea Production Area, Tea Production Volume and Tea Price on the Sales of Tea in Indonesia

Rosita Widjojo

Abstract

As one of Indonesia’s commodity, tea has been a popular commodity but its popularity has been declining. Indonesia now imports more tea than exports, which suggests a decline in export sales, and the study discusses factors that affect it. Commodity research in Indonesia mainly comes from agriculture faculties. Very few journals discussed about the economic side of tea. The theoretical framework focused on the relationship of tea production area (X1), tea production volume (X2) and tea price (X3) as the independent variables and the sales of tea as the dependent variable (Y). The research methodology uses a descriptive study and a quantitative method where the data taken for the analysis is secondary. The analysis shows that from the three independent variables, tea production area has no relationship on sales, while tea production volume and tea price have a relationship on sales. In summary, even though in reality there is a decline in tea producing areas, as long as the plantations can produce in volume, then sales can increase. However, if there is an increasing amount of supply, followed by an increasing demand, it would push the price down.